Issue with image thumbnails appearing (image styles)

I am unable to get thumbnails and other images that use image styles to work.

http://ursusfightclub.org/people/profile/makoto

'Taking the field in Belmonte' should be the alt tag for the image.

Users are also unable to reset passwords. It returns "You are not authorized to access this page."

I believe they are related to rewrite and nginx

I've checked and utilized https://groups.drupal.org/node/273378
I've attempted to implement Perusio's config http://github.com/perusio/drupal-with-nginx
However, I am using Centos 6.5. and it does not come with the http://wiki.nginx.org/HttpSetMiscModule module that Perusio's config requires for lua based rewrites; if I understand it correctly. I might be misunderstanding it.

The site did work on apache, but it was slow and I changed over to nginx and everything else seems ok.

Configs and all the things you'll ask for below.

nginx -V returns

nginx version: nginx/1.6.0
built by gcc 4.4.7 20120313 (Red Hat 4.4.7-3) (GCC)
TLS SNI support enabled
configure arguments: --prefix=/etc/nginx --sbin-path=/usr/sbin/nginx --conf-path=/etc/nginx/nginx.conf --error-log-path=/var/log/nginx/error.log --http-log-path=/var/log/nginx/access.log --pid-path=/var/run/nginx.pid --lock-path=/var/run/nginx.lock --http-client-body-temp-path=/var/cache/nginx/client_temp --http-proxy-temp-path=/var/cache/nginx/proxy_temp --http-fastcgi-temp-path=/var/cache/nginx/fastcgi_temp --http-uwsgi-temp-path=/var/cache/nginx/uwsgi_temp --http-scgi-temp-path=/var/cache/nginx/scgi_temp --user=nginx --group=nginx --with-http_ssl_module --with-http_realip_module --with-http_addition_module --with-http_sub_module --with-http_dav_module --with-http_flv_module --with-http_mp4_module --with-http_gunzip_module --with-http_gzip_static_module --with-http_random_index_module --with-http_secure_link_module --with-http_stub_status_module --with-http_auth_request_module --with-mail --with-mail_ssl_module --with-file-aio --with-ipv6 --with-http_spdy_module --with-cc-opt='-O2 -g -pipe -Wp,-D_FORTIFY_SOURCE=2 -fexceptions -fstack-protector --param=ssp-buffer-size=4 -m64 -mtune=generic'

Config on the vhost:

server {
  server_name ursusfightclub.org www.ursusfightclub.org medievalcombat.net www.medievalcombat.net;
  root /var/www/combat; ## <-- Your only path reference.
  error_log /var/log/nginx/combat-error.log debug;
    access_log /var/log/nginx/combat-access.log;
    location = /favicon.ico {
      log_not_found off;
      access_log off;
    }
  location = /robots.txt {
      allow all;
      log_not_found off;
      access_log off;
    }
  # Very rarely should these ever be accessed outside of your lan
    location ~* \.(txt|log)$ {
    deny all;
    }
  location ~ \..*/.*\.php$ {
    return 403;
    }
  location / {
    # This is cool because no php is touched for static content
      index index.php index.htm index.html;
      try_files $uri @rewrite;
    }
    location @rewrite {
      # Some modules enforce no slash (/) at the end of the URL
      # Else this rewrite block wouldn't be needed (GlobalRedirect)
      rewrite ^/(.*)$ /index.php?q=$1 last;
    }
    location ~ \.php$ {
      fastcgi_pass   unix:/tmp/php5-fpm.sock;
      fastcgi_index  index.php;
      fastcgi_param  SCRIPT_FILENAME $document_root$fastcgi_script_name;
      include /etc/nginx/fastcgi_params;
    }
   #Fighting with ImageCache? This little gem is amazing.
    location ~* /sites/.*/files/imagecache/ {
    try_files $uri @rewrite;
    }
    location ~* \.(js|css|png|jpg|jpeg|gif|ico)$ {
      expires max;
      log_not_found off;
    }
    location ~* /sites/.*/files/styles/ {
      access_log off;
      expires 30d;
      try_files $uri @rewrite;
    }

Thank you in advance for assistance
xalg